Huge "hidden" market spurs sales growth of diabetes care systems

Drug Store News, Oct 10, 1994

There are few health and beauty care categories that can match the rapid growth of diabetes care systems. Category sales gains have exceeded 20% for the past few years and there are no signs of a slowdown.

In fact, the prospects for future growth are better than ever. Improved medical screening, changing demographics and product innovation are powerful forces leading to growth through the 1990s and beyond.

More than seven million Americans are diagnosed with diabetes, but medical authorities estimate another seven million people have diabetes which has not yet been diagnosed. As medical screening programs discover these undiagnosed cases, a huge "hidden" market for diabetes-related products is being created. The population with diabetes is being further expanded as the average age of Americans increases. Some forms of diabetes are age-related, and more prevalent in older people.

This increase in customers with diabetes is especially good news for retailers. People with diabetes typically spend seven times more than the average pharmacy patient, and these purchases play a crucial role in the success of any pharmacy.

All retail classes of trade are competing vigorously to capture the lucrative diabetes market. Drug stores should emphasize their strengths--customer service, education and individual counseling--to gain a competitive advantage over all other formats.

Diabetes care systems sell best when prominently featured in a complete diagnostic care department. Many retailers are devoting four feet of shelf space to these departments, and some larger chains are creating eight-foot departments.

Successful retailers make sure their pharmacists have a thorough knowledge of diabetes care management. Most patients are quite educated about their condition and open to discussing the features and benefits of any product. To assist in the educational process, Miles Inc., Diagnostic Division offers a Pharmacy Support Program of independent study and seminars for CEU credits on diabetes management.

One year after its introduction, the Glucometer [Elite.sup.TM] Diabetes Care System from the Miles Inc. Diagnostics Division, has carved out a substantial market share position. Its popularity is not hard to understand. The Glucometer Elite sets a new standard for simplicity in blood glucose monitors. Patients simply insert the Glucometer Elite Test Strip to turn on the meter, touch blood to the tip of the test strip, which automatically draws up the proper amount of sample and starts the timing, then the results are displayed one minute later. The system automatically determines the correct blood sample size, and requires up to one-third less blood than other competitive blood glucose meters. Everything needed to begin blood glucose testing is included in the system.

An effective advertising and promotion program gives consumers an added incentive to buy the Glucometer Elite system. A $65 rebate and a $35 competitive meter trade-in are generating substantial incremental sales increases for retailers.

Whether they buy direct or through wholesalers, retailers can build their business with Miles' cooperative advertising programs. Information about a variety of promotional programs is available from your local Miles Inc., Diagnostic Division sales representatives.

They also can tell you about a new Miles product, the Glucometer [Encore.sup.TM], Diabetes Care System, which is being introduced in the second half of 1994. This new innovative product is bound to generate excitement and incremental sales in the burgeoning diabetes care category.